COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Vs. MILIND KANTILAL SHAH CHARTERED ACCOUNTANT

JUDGEMENT

(1.) This reference is made under Section 21(5) of the Chartered Accountants Act, 1949 (the Act), by which the Council of the Institute of Chartered Accountants of India (the Council), who has forwarded the case to this Court after finding the respondent, a Member of the Institute of Chartered Accountants of India, guilty of professional misconduct within the meaning of Clauses (5), (6) and (7) of Part I of the Act read with Sections 21 and 22 of the said Act.

(2.) The matter arises out of a complaint filed by Shri R. Banerjee, Managing Director of the Gujarat State Financial Corporation (GSFC) against the respondent - Shri Milind Kantilal Shah, who is a practising Chartered Accountant and who had issued a certificate which the complainant - Corporation relied upon in order to disburse the loan to a Company named M/s Maimoon Textiles Pvt. Ltd. The complainant made the following allegations against the respondent :

(3.) Mr.S.N.Soparkar, learned Senior Advocate appearing for the Institute, contended that the Council had found the respondent guilty of professional misconduct within the meaning of Clauses (5), (6) and (7) of Part I of the Second Schedule to the Act read with Sections 21 and 22 of the Act on the basis of the material on record gathered during the inquiry conducted by the Disciplinary Committee, which has been statutorily constituted. It was submitted that the recommendation of the Council be accepted and the name of the respondent be removed from the Register of Members for a period of one year.